Study Guide for the Second Edition of Technical Analysis The Complete Resource for Financial Market Technicians

by Kirkpatrick, Charles D., II; Dahlquist, Julie A.

• ISBN13: 9780133092608
• ISBN10: 0133092607
• Edition: 1st
• Format: Paperback
• Copyright: 2012-09-13
• Publisher: FT Press

Summary

Now any trader (stock market, commodity, option, etc.) or prospective trader can master the skills of technical analysis with this up-to-date, hands-on study guide to accompany the popular text selected by the Market Technicians Association as the principal text for its prestigious CMT program. Charles D. Kirkpatrick II and Julie Dahlquist help readers learn, review, and master all key elements of technical analysis, preparing them to earn the Market Technician Association's prestigious CMT certification -- and, if they choose, apply their CMTs towards earning indispensable SEC Section 86 credentials. Fully aligned with the current Second Edition of Technical Analysis, this workbook-style book includes chapter learning objectives, chapter summaries, reviews of key terms and concepts, chapter questions, problems, solutions for all of the problems in the main text, additional questions and activities, multiple choice questions, student self quizzes, and more. It covers the full spectrum of issues, including tested sentiment, momentum indicators, seasonal affects, flow of funds, testing systems, risk mitigation strategies, and new advances in market analysis, portfolio selection, and systems management, and more.

Author Biography

Charles D. Kirkpatrick II, CMT, is

• President, Kirkpatrick & Company, Inc., Kittery, Maine--a private corporation specializing in technical research; Editor and Publisher of the Market Strategist newsletter.
• Past Adjunct Professor of Finance, Brandeis University International School of Business, Waltham, Massachusetts.
• Past Director and Vice President, Market Technicians Association Educational Foundation, New York, New York--a charitable foundation dedicated to encouraging and providing educational courses in technical analysis at the college and university level.
• Past Editor, Journal of Technical Analysis, New York, New York--the official journal of technical analysis research.
• Past Director, Market Technicians Association, New York, New York--an association of professional technical analysts.
• Author of Beat the Market: Invest by Knowing What Stocks to Buy and What Stocks to Sell and Time the Markets: Using Technical Analysis to Interpret Economic Data.

In his life in the stock and options markets, Mr. Kirkpatrick has been a hedge fund manager, investment advisor, advisor to floor and desk traders and portfolio managers, institutional stock broker, options trader, desk and large-block trader, lecturer and speaker on aspects of technical analysis to professional and academic groups, expert legal witness on the stock market, owner of several small businesses, owner of an institutional brokerage firm, and part owner of a CBOE options trading firm. His research has been published in Barron’s and elsewhere. In 1993 and in 2001, he won the Charles H. Dow Award for excellence in technical research, and in 2009, he won the MTA Annual Award for his contributions to technical analysis. Educated at Phillips Exeter Academy, Harvard College (A.B.) and the Wharton School of the University of Pennsylvania (M.B.A.), he was also a decorated combat officer with the 1st Cavalry Division in Vietnam. He currently resides in Maine with his wife, Ellie, and their various domestic animals.

Julie R. Dahlquist, Ph.D., CMT, received her B.B.A. in economics from University of Louisiana at Monroe, her M.A. in Theology from St. Mary’s University, and her Ph.D. in economics from Texas A&M University. Currently, she is a senior lecturer, Department of Finance, at the University of Texas at San Antonio College of Business. Dr. Dahlquist is a recipient of the Charles H. Dow Award for excellence and creativity in technical analysis and is a frequent presenter at national and international conferences. She is the coauthor (with Richard Bauer) of Technical Analysis of Gaps: Identifying Profitable Gaps for Trading and Technical Market Indicators: Analysis and Performance. Her research has appeared in the Financial Analysts Journal, Journal of Technical Analysis, Managerial Finance, Applied Economics, Working Money, Financial Practices and Education, Active Trader, and in the Journal of Financial Education. She serves as Editor of The Journal of Technical Analysis and is on the Board of the Market Technicians Association Educational Foundation. She resides in San Antonio with her husband, Richard Bauer, and their two children, Katherine and Sepp.

Table of Contents

Part I     Introduction

1     Introduction to Technical Analysis     1

2     The Basic Principle of Technical Analysis--The Trend     5

3     History of Technical Analysis     17  

4     The Technical Analysis Controversy     21  

Part II     Markets and Market Indicators 

5     An Overview of Markets     27 

6     Dow Theory     49 

7     Sentiment     57

8     Measuring Market Strength     65 

9     Temporal Patterns and Cycles     73

10     Flow of Funds     83 

Part III     Trend Analysis   

11     History and Construction of Charts     93

12     Trends--The Basics     109 

13     Breakouts, Stops, and Retracements     125

14     Moving Averages     137  

Part IV     Chart Pattern Analysis

15     Bar Chart Patterns     151  

16     Point-and-Figure Chart Patterns     167  

17     Short-Term Patterns     175 

Part V     Trend Confirmation  

18     Confirmation     195    

Part VI     Other Technical Methods and Rules  

19     Cycles     217    

20     Elliott, Fibonacci, and Gann     227 

Part VII     Selection  

21     Selection of Markets and Issues: Trading and Investing     235  

Part VIII     System Testing and Management   

22     System Design and Testing     243

23     Money and Risk Management     251  

Part IX     Appendices   

A     Basic Statistics     259 

Answer Key     269